
Setting sail: Target setting in the sustainable blue economy
This report provides a manual to guide financial institutions in implementing target-setting practices within the blue economy. It outlines the principles of sustainable finance, focusing on sectors like seafood and aquaculture. The document includes guidance for creating actionable targets, monitoring progress, and integrating environmental and social risks, with case studies and examples for practical application.
Please login or join for free to read more.

OVERVIEW
Introduction
This manual with input from stakeholders, aims to guide financial institutions in setting and implementing targets for sustainable finance in the blue economy. The manual is designed to support banks, investors, and insurers, particularly focusing on the seafood sector. It aligns with global frameworks such as the Kunming-Montreal Global Biodiversity Framework and the Paris Agreement, encouraging institutions to take a proactive role in sustainable finance.
Approach
The report recommends financial institutions follow a structured approach to target setting, integrating both practice and impact targets. Practice targets focus on institutions’ internal processes, while impact targets seek measurable, positive outcomes in the real economy. The approach emphasises using SMART (specific, measurable, achievable, relevant, and time-bound) targets, aligned with science-based standards. The document encourages the use of existing frameworks such as the Science-Based Targets Network (SBTN) and the Taskforce on Nature-related Financial Disclosures (TNFD) for setting these targets.
Step-by-step guide
The guide begins with identifying impact, where institutions should assess their exposure to sectors such as seafood, maritime transportation, and coastal tourism. This involves portfolio composition analysis and reviewing existing policies. Tools like the UNEP FI Portfolio Impact Analysis Tool can help institutions understand their exposure to unsustainable activities.
The second step is to assess exposures, where institutions should pinpoint key issues and prioritise them based on materiality. For example, for seafood-related risks, institutions should focus on unsustainable fishing practices, lack of transparency, or environmental degradation caused by aquaculture. The assessment should consider both the institution’s practices and their impact on the environment and communities.
The third step is to set targets. Targets should be set based on the most material risks identified. For instance, institutions might aim to ensure that by 2030, 75% of their seafood portfolio is sourced from traceable and sustainable fisheries. These targets should be SMART and aligned with international agreements such as the Paris Agreement and the Sustainable Development Goals (SDGs).
Next, institutions must implement action plans to achieve their targets. This involves creating detailed plans that outline specific actions, timelines, and required resources. For example, if an institution sets a target to eliminate unsustainable aquaculture practices from its portfolio, it should develop a clear action plan that includes steps like engaging with companies in the seafood sector, promoting best practices, and incorporating these practices into lending criteria.
The final step is to monitor progress. Institutions should track the success of their targets and regularly review their impact on the environment and communities. Monitoring should involve both internal assessments and, where possible, third-party verification. For example, banks can use third-party ESG rating agencies or certifications such as the Marine Stewardship Council (MSC) to verify progress on seafood sustainability targets.
Reporting
Annual reporting is crucial, and financial institutions are expected to disclose their progress towards meeting targets. Reporting should include both qualitative and quantitative evidence. For example, institutions can report the percentage of seafood companies in their portfolio that have adopted full-chain digital traceability or reduced exposure to illegal, unregulated, and unreported (IUU) fishing. A hypothetical case study from The Shipowners’ Club, featured in the report, demonstrates how insurers can apply these steps, highlighting the importance of data collection, monitoring, and capacity building.
This step-by-step process, integrated into the sustainable blue economy, helps financial institutions set meaningful targets, implement them effectively, and monitor their impact on both financial performance and environmental sustainability. The emphasis on traceability, risk management, and climate resilience highlights the sector’s role in driving sustainability in ocean-based economies.